SC directs Jaiprakash Associates to deposit Rs200 crore by May 10
21 Mar 2018
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The Supreme Court on Wednesday asked Realty firm Jaiprakash Associates, which has been asked to deposit Rs 2,000 crore with the registry of the apex court in order to refund money of home buyers of Jaypee Infratech, to deposit Rs200 crore in two installments by 10 May, with the first Rs100 crore to be deposited by 6 April.
The court also directed the firm not to send notices for payment defaults to buyers who have opted for a refund. It also asked the company to provide a project-wise chart of buyers seeking refund to enable dispersing it on a pro-rata basis.
The company informed the court that just eight per cent of the 30,000-plus buyers had opted for a refund with the rest wanting possession of the flats. It has also sought (or received) occupation certificates for 13,500 flats in 2017-18.
Earlier in January, the apex court had asked the company to deposit Rs125 crore to safeguard the interest of home buyers. It had also asked Jaypee Infratech Ltd, the holding firm, to provide all details of its projects across India.
The Reserve Bank of India had in January moved the Supreme Court seeking permission to initiate insolvency proceedings against Jaiprakash Associates. Last year, it had directed banks to file insolvency petitions against real estate firms.
The court had also restrained promoters and independent directors of Jaiprakash Associates and their family members from transferring personal assets or property without the court’s permission.
A Delhi resident who had booked a home in a Jaypee Infratech project had filed a public interest litigation against the company for failure to deliver the flats.
